Herbalife runs software on Oracle platform to boost global effort.Another misrepresentation by Ackman is only three distribution locations, but Herbalife has hundreds of distribution points. Goudis says Ackman would have been told this if he had called.

Frankos helped author product quality standards for nutritional supplements. He said he joined Herbalife so he could be part of a company that treats its customers the same way the FDA treats consumers.

DeSimone tells story about man without a nametag who approached him at conference. The person said he was with Pershing Square. DeSimone said he asked the person to tell Ackman to call him, but the hedge fund manager did not.

Coughlan said Herbalife doesn’t fit behavior of a pyramid scheme because of its product quality and it allows people to return unsold merchandise. Personal consumption by distributors amounts to a legitmate retail transaction since they’re using the product, Coughlan said.

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